A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers. Etisalat will also have more opportunities to invest in upcoming projects. If the opposite occurs and etisalat has low availability and higher costs it would mean, people spend less on their goods/services which would mean there’s a low
This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought. If there is an over production in the goods due to negative externalities, it means (s) has shifted to (s1). Which results in too many goods being supplied out to the public. The prices are also very low which makes it easier for them to buy goods, especially those with lower income. At the point the social cost [s1] is not taken into account only the private cost is.
A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,
The firms with lower ROS, ‘losers’, must find ways to reduce costs from their operations/products and/or be able to charge higher prices without losing unit sales in order to increase their ROS and avoid domination by the more successful firms. What type of competition is found in each
This document will show results from the cash flow forecast and analysis of any possible future changes that could be made such as selling price, increasing or decreasing costs, etc. Prices of materials If the prices of the raw materials that the company are using increase then this will have an effect on the cash flow forecast because the figures will change due to the prices of the raw materials. If the raw materials change price then this will change the money that is in the total outcome. This will affect the company because if the company is buying expensive material and not making enough money back from the sold product then it is likely to make a loss and the company could therefore go bankrupt. Figures on the cash flow forecast at this point will look very poor.
The price elasticity is important in business because it refers to the change in quantity demanded to the change in the price of a service or product. Elastic demand is a change in the price of the service or goods that can affect the demand. Will Bury product is different, and the success of his product can assume that the price can be elastic for his product. In the market, there are similar products that are available for different prices the lower the price may work out better in attracting new buyers. However, in Will Bury situation he may have to raise prices and sell more items to bring in more
The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost. Attracting employees to join the company is the better option unless there is a management position that requires exceptional talent to fill the position. Relocation of prospective employees can be costly to the company and there is no guarantee that they will be long term employees of the company. With the company's plans for expansion I would recommend overstaffing. This will allow the company to stock pile talent for future
Big advantages need to be broke down for their financial value and smaller advantages might seem to be more difficult to measure at first, but they will ultimately give the business more financial opportunity in the future. If the assets surpass their cost of accomplishment, the assets should be broke down using capital budgeting and figure out if they will see a good sizable profit compared to the capital that the company must invest in. A company needs to arrive with information systems plans that satisfy the business plan and approach, and correspond with their existing information technologies. Using scoring models and portfolios breakdown can both be used to help evaluate information systems
Jack Johnson Johd Jackson College Composition II October 11, 2010 Outsourcing America Eliminating or reducing American companies trend towards outsourcing could lower the unemployment rate and expedite the economic recovery. Outsourcing is one of the major causes of the current economic collapse. Outsourcing takes jobs away from Americans, and without the ability to work it further reduces the disposable income that is greatly needed in order for the public to buy goods and services. These are the goods and services that will fuel the economic growth that is necessary for recovery from the current downturn in the economy. When you outsource, or offshore, jobs you also eliminate the American workers ability to pay for consumption.
Why would directors be more efficient than shareholders at improving managerial performance and changing their incentives? Directors would be more effective at altering the performance of managers specifically because they have a position to more directly control the managers’ incentives. Shareholders can only periodically vote on large issues, which do not directly affect the individually efficient behavior for managers. Directors, on the other hand, can adopt policies that tie the managers’ compensation to their performance, or threaten them with loss of their jobs if they perform below a certain